Strategy published on : 03/12/2018 | 09:17
long tradeTarget price hit
Entry price : 24.21€
Target : 29€
Stop-loss : 21.8€
Potential : 19.79%
Pursuant to the correction that has taken place in recent weeks with respect to the shares in Inditex SA, further downside risk now appears limited by close and important technical support levels at 23.94 EUR.
Investors have an opportunity to buy the stock and target the € 29.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 24 EUR in weekly data.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● This company will be of major interest to investors in search of a high dividend stock.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The group usually releases earnings worse than estimated.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● Below the resistance at 29.01 EUR, the stock shows a negative configuration when looking looking at the weekly chart.